But as the deadline for the end of the loan moratorium period draws closer, concerns are mounting for both banks and consumers who took the moratorium route. For the banks, the worry is rising non-performing loans (NPLs), the risk of banks’ loan loss provisions (LLP) increasing and a possible spike in gross impaired loan (GIL) ratios. Around 70% of Maybank’s loan book in Malaysia is under the moratorium. “Surely, it will have an impact on the banks as loan repayments are part of the core business of banks. “The impact may vary from bank to bank, but in general, we can say that the moratorium affects banks’ cash flows and other fundamentals.”"It would be best for the moratorium to end in September."

Source: thestar July 03, 2020 23:48 UTC